The World Bank plans to provide $50 billion financial support to African countries in 2023, according to Ousmane Diagana, Vice President of the Bank. The support aims to alleviate the challenges faced by the continent, such as climate change, drought, food insecurity, COVID-19, and political instability. The financial support will be in the form of budget support and projects like safety-net programs.
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Nigeria: FCMB asset finance facility expands lending to SMEs
So far, over 25,800 Nigerian SMEs have accessed a new asset finance facility managed by First City Monument Bank. FCMB has awarded a total of N42.4 billion in loan guarantees to SMEs that lack sufficient collateral coverage. The bank has also issued over N637.08 billion in loans to entrepreneurs. The bank’s asset finance facility offers SMEs a repayment period of up to four years to purchase new equipment or replace depreciating assets, which Mr. George Ogbonnaya, Group Head of Business Banking, said is critical for SMEs to thrive. In recognition of its commitment to SMEs, FCMB has received several awards, including “Best Bank with the Highest Impact on SMEs in Nigeria” for the second year in a row.
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South Africa: Meet Michiel Le Roux, founder of Capitec
Illuminating profile of Le Roux, who co-founded Capitec in 2001 and helped make it into one of Africa’s greatest economic success stories. Capitec targets the emerging middle class in South Africa and is listed on the Johannesburg Stock Exchange (JSE).
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South Africa: Nedbank appoints new chair
Daniel Mminele, the former head of the Presidential Climate Finance Task Team, has been appointed as the new chair designate and independent non-executive director of Nedbank. His appointment as non-executive director will take effect from May and he is set to be elected chair at the bank’s AGM in June, succeeding Mpho Makwana. Nedbank’s announcement said that Mminele’s extensive expertise and experience in banking and financial services, including climate finance, would benefit the bank.
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South Africa: Smile Identity raises $20m Series B
Smile Identity, an African KYC and identity verification platform, has raised $20m in a series B funding round to expand its product and engineering team and AI-powered biometrics. Led by Costanoa and Norrsken22, the round also included participation from Commerce Ventures and Two Culture Capital. Smile Identity intends to expand its presence across Africa and into Francophone and Arab-speaking markets. It also plans to work closely with regulators and ID authorities to build consumer consent standards and enforce African data protection laws.
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South Africa: Development Bank of Southern Africa replaces CEO
The current CEO of DBSA, Mr. Patrick Dlamini, will step down from the board and its committees on March 31, 2023. The DBSA Board has nominated Ms. Boitumelo Mosako as the new CEO, subject to internal appointment processes and procedures. Shareholder approval has been obtained. The effective date of the new CEO appointment will be announced once completed.
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Nigeria: Banks set on fire in protest over naira shortage
Protests have erupted in Nigeria over a shortage of the new naira notes, which have been redesigned to replace dirty cash and promote a cashless society. Customers have set fire to two commercial banks and looted ATMs in Warri and Benin City, while other banks have been broken into. The Central Bank of Nigeria has not released enough of the new notes to satisfy demand. The protests come 10 days before elections in the country, with President Muhammadu Buhari facing calls to take action to avoid losing votes for the ruling All Progressives Congress.
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Ghana: IMF appoints resident advisor to central bank
The International Monetary Fund (IMF) has appointed Leonard Chumo as Resident Advisor to the Bank of Ghana (BoG) to help build the capacity of the banking supervision function of the regulator. The appointment, which was made at the behest of BoG, is fully funded by Switzerland’s State Secretariat for Economic Affairs (SECO). Chumo will support the implementation of Pillar two and three of the Basel II/III capital frameworks, as well as strengthen the risk-based supervisory framework at BoG.
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Nigeria: Sterling Bank appoints director
Sterling Bank Plc has appointed Manish Singhal as a non-executive director. Singhal, who has over 26 years of experience in the financial services industry, is the general manager of operations, International Banking Group, at State Bank of India, where he oversees operations and information systems, human relations, and strategy. He has also worked as a full-time director and chief financial officer at SBICAP Securities Limited.
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Kenya: National Bank appoints new managing director
George Odhiambo has been appointed as the new Managing Director of the National Bank of Kenya (NBK), replacing Peter Kioko who held the position in an acting capacity. George is a seasoned banker and outgoing MD of BPR Bank Rwanda PLC. He previously served as the MD of KCB Bank Rwanda and has held various leadership roles in banks locally and internationally. NBK is a subsidiary of KCB Group, which fully acquired the NBK brand in October 2019.
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Madagascar: Central bank reports uptick in credit activity
The latest report on the Madagascan banking sector by the Banky Foiben’i Madagasikara suggests a resumption of credit activity in Q3 2022. The report highlights positive results across most banks, with a general increase in real credit flow and profitability. Meanwhile, banks invested in the region increased, while costs of operation decreased.
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Uganda: SC Ventures and Yabx to start providing consumer finance
Standard Chartered’s innovation and fintech investment arm SC Ventures has partnered with fintech Yabx to offer consumer finance in Africa. The companies will offer “purpose-driven loans” in Uganda, focusing on education, skill development, and gender, before expanding to other African markets. The companies are leveraging the impact of the Covid-19 pandemic to digitize banking and access to credit for underbanked customers. The partnership aims to provide a seamless experience, using technology and data to serve the underserved in Africa.
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Kenya: Nigerian digital bank Umba launches services
Nigeria-based digital bank Umba has launched its services in Kenya, following its acquisition of a majority shareholding in Daraja Microfinance Bank. The bank offers a range of services including current accounts, savings accounts, fixed deposit accounts, lending, and payments, with a focus on serving Africa’s underserved market. Umba aims to offer a transparent, low-fee service, and has strong backing from leading fintech investors including Costanoa Ventures and Monzo founder Tom Blomfield.
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Kenya: Ruto nominates deputy governor of central bank
Susan Koech, a career banker, has been nominated by Kenyan President William Ruto to be the second deputy governor of the central bank. The post has been vacant for more than five years, but with the current governor and one deputy’s terms set to expire in June, Koech could serve as acting governor if new appointments are not made. Koech’s nomination has to be approved by the Kenyan Parliament.
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Liberia: Global Bank appoints new managing director
Global Bank Liberia Limited (GBLL) has appointed Lekan Balogun as its new managing director. Balogun, a Nigerian banking professional with over 25 years of experience across various areas of the industry, was chosen to lead the bank into its next phase of growth and success after its acquisition by Oakwood Africa Investments Limited. Balogun has a track record of success in the financial sector in West Africa, including Liberia, and is confident that this new phase will see service innovation and excellence delivered at all GBLL touchpoints.
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Togo: CBI Togo’s Islamic finance window shows growth
As of the end of 2022, the Islamic finance activities of the Togolese subsidiary of Coris Bank International (CBI Togo), the third largest banking player in the country, represented CFA900 million ($1.61 million) in financing provided to customers and around CFA1.6 trillion ($2.86 billion) in collected resources. CBI Togo launched its new savings plan, “Epargne Hadj,” which follows Islamic finance principles and aims to make the process of pilgrimage easier. The Togo government has previously raised resources through Islamic bonds (Sukuks). The global Islamic finance industry was worth over $2.8 trillion in 2021, slightly more than 1% of conventional finance.
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South Africa: Zero Bank claims zero fraud on credit cards
South African digital bank Bank Zero has reported zero successful card fraud incidents since its launch in 2019, despite numerous attempted frauds. The bank attributes its success to its use of advanced technology such as biometric identification and behavioral analytics. Bank Zero’s security system always requires a customer’s authorisation for an online card transaction, whether the website is secure or not, and the bank has a registered patent on its card to prevent skimming. While its customer base is smaller, Bank Zero still claims it is statistically significant.
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South Africa: Rand Merchant Bank opening representative office in NYC
Rand Merchant Bank (RMB) is establishing a presence in the United States to facilitate business flows into Africa. RMB plans to help US companies expand their business into Africa by providing them with access to RMB’s extensive network and expertise in Africa. RMB is a subsidiary of FirstRand Group, one of South Africa’s largest financial services groups. The move is expected to further deepen RMB’s commitment to Africa and provide US companies with a strong partner to help them navigate the African business landscape.
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Uganda: DFCU Bank appoints new director
Sebuyira Mukasa has been named a non-executive director at DFCU Bank in Uganda. Mukasa has over 20 years of experience in the banking industry and has held various leadership positions in financial institutions in Uganda and East Africa. He will lead the bank’s board and provide strategic direction for the bank. The appointment of Mukasa is expected to enhance the bank’s growth and position as a leading financial institution in Uganda.
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Sierra Leone: Court halts sale of Standard Chartered Sierra Leone
A Sierra Leonean court has granted an injunction preventing the sale of Standard Chartered Bank Sierra Leone until the end of a wrongful dismissal case brought against the bank by two former senior employees. The employees, who were dismissed in 2021, are seeking compensation for breach of contract and damages for injury to their professional and personal reputation. The parent company, Standard Chartered Plc, had previously challenged the authority of Sierra Leonean courts to hear the case, but later submitted to the jurisdiction. The case has been adjourned until March 6th 2023.
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DR Congo: IFC lends $35m to Rawbank for MSME loans
IFC announced a new investment of 35 million USD in Rawbank/DR Congo to improve access to financing for micro, small and medium enterprises (MSMEs). The investment is seen as a commitment to growth and job creation in the DR Congo, and will significantly increase the availability of long-term credits for small businesses in a market where MSME financing is estimated to be 26% of GDP. The investment falls under IFC’s “Base of the Pyramid” program, launched in 2021 to help financial service providers extend credit to small businesses in the wake of the Covid-19 pandemic, and is supported by the Private Sector Promotion Window of the International Development Association.
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Kenya: Safaricom appoints seasoned banker Esther Waititu as fintech chief
Esther Masese Waititu has been appointed as the new Chief Financial Services Officer at Safaricom, a leading telecommunications company in Africa, effective February 21st, 2023, pending regulatory approval. She brings over 15 years of financial services experience to the role, previously serving as Director of Corporate Banking at KCB Bank Group and has held various leadership positions at Standard Chartered Bank, Stanbic Bank, and Commercial Bank of Africa.
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Ghana: First National Bank appoints new CEO
Warren Adams has been appointed CEO of First National Bank Ghana, effective February 1, 2023. He replaces Dominic Adu, who was appointed CEO after the acquisition and merger with GHL Bank in 2020. Adams served as Executive Director for First National Bank Ghana and previously served as CEO for First National Bank’s operations in Tanzania, Mozambique, and Lesotho. The bank’s board chairman, Emmanuel Idun, says Adams’ leadership capabilities and expertise will help the bank expand its offerings and contribute to business growth.
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Zimbabwe: Women’s microfinance bank faces criticism
Zimbabwe Women Microfinance Bank (ZWMB) has been criticized by stakeholders for failing to help impoverished women and instead operating as a profit-seeking entity. Women from diverse socio-economic backgrounds at a recent Economic Justice for Women Project event said the bank has failed to turn around their fortunes and only assists wealthy women who have valuable collateral. The bank’s CEO dismissed the allegations and said the bank supports women using collateral that is not acceptable by other financiers. However, she admitted the bank is struggling to support women, as only 150,000 clients transact with the bank and only 114,000 have received loans, despite the population of women in poverty being 7.9 million.
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Ghana: Military manufacturing bullion vans for local banks
Ghana Armed Forces’ business arm, Defence Industries Holding Company, and Kenaki Manufacturing have established DIKMAC, a joint venture, and created their first four armored vehicles at a facility in Accra. The vehicles, soon to be on the roads, have been retrofitted for use by the Banking industry in Ghana to protect their assets and staff, following a series of armed attacks. The DIKMAC plant was established with technical support from Israel Aerospace Industries and has the backing of the Bank of Ghana, Ghana Police Service, and Ghana Association of Bankers.
Categories: BanksTags: Ghana